Applicability of caro report

XYZ is a Private Limited. The company has not availed any loans from bank or financial institutions. The company does not have any income / revenue for the past few years. The paid up capital is Rs.55.00 lacs. Debit balance (loss) in profit & loss account is about Rs.1.10 crores.

My query is whether CARO Report is applicable to this company. This is due to the fact that in view of the debit balance in P&L the entire capital has been eroded.